Hennessy Advisors (HNNA) 10-Q 2 May 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	HNNA
Entity Registrant Name	HENNESSY ADVISORS INC
Entity Central Index Key	1,145,255
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,807,798

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 16,646	$ 15,700
Investments in marketable securities, at fair value	8	8
Investment fee income receivable	4,712	4,325
Prepaid expenses	478	1,614
Other accounts receivable	486	584
Total current assets	22,330	22,231
Property and equipment, net of accumulated depreciation of $1,027 and $922, respectively	369	254
Management contracts	78,022	74,628
Other assets	188	145
Total assets	100,909	97,258
Current liabilities:
Accrued liabilities and accounts payable	4,521	7,353
Income taxes payable	634	676
Deferred rent	187	202
Current portion of long-term debt, debt issuance costs	4,228	4,228
Total current liabilities	9,570	12,459
Long-term debt, net of debt issuance costs and current portion	19,614	21,728
Deferred income tax liability, net of deferred tax asset	7,693	11,541
Total liabilities	36,877	45,728
Commitments and Contingencies (Note 8)
Stockholders' equity:
Common stock, no par value, 22,500,000 shares authorized: 7,807,594 shares issued and outstanding at March 31, 2018, and 7,776,563 at September 30, 2017	16,125	14,943
Retained earnings	47,907	36,587
Total stockholders' equity	64,032	51,530
Total liabilities and stockholders' equity	$ 100,909	$ 97,258

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 1,027	$ 922
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	22,500,000	22,500,000
Common stock, shares issued	7,807,594	7,776,563
Common stock, shares outstanding	7,807,594	7,776,563

Statements of Income (Unaudited

Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Investment advisory fees	$ 12,893	$ 12,063	$ 25,565	$ 24,172
Shareholder service fees	1,113	1,173	2,254	2,358
Total revenue	14,006	13,236	27,819	26,530
Operating expenses:
Compensation and benefits	3,487	3,275	6,653	6,489
General and administrative	1,430	1,395	2,945	2,790
Mutual fund distribution	123	72	243	133
Sub-advisor fees	2,648	2,292	5,180	4,581
Amortization and depreciation	95	91	178	184
Total operating expenses	7,783	7,125	15,199	14,177
Net operating income	6,223	6,111	12,620	12,353
Interest expense	266	278	529	544
Other income	(22)		(35)
Income before income tax expense	5,979	5,833	12,126	11,809
Income tax expense (benefit)	1,424	2,205	(616)	4,185
Net income	$ 4,555	$ 3,628	$ 12,742	$ 7,624
Earnings per share:
Basic	$ 0.58	$ 0.47	$ 1.63	$ 0.99
Diluted	$ 0.58	$ 0.47	$ 1.62	$ 0.98
Weighted average shares outstanding (prior periods restated for stock split, see Note 6):
Basic	7,805,880	7,688,994	7,803,114	7,687,374
Diluted	7,886,380	7,773,622	7,865,207	7,784,353

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Unaudited) - 6 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Total	Common Stock [Member]	Retained Earnings [Member]
Beginning balance at Sep. 30, 2017	$ 51,530	$ 14,943	$ 36,587
Beginning balance, Shares at Sep. 30, 2017		7,776,563
Net income	12,742		12,742
Dividends paid	(1,365)		(1,365)
Employee and director restricted stock vested	0	$ 0	0
Employee and director restricted stock vested, Shares		38,700
Repurchase of vested employee restricted stock for tax withholding	(151)	$ (94)	(57)
Repurchase of vested employee restricted stock for tax withholding, Shares		(9,316)
Shares issued for auto-investments pursuant to the 2015 and 2018 Dividend Reinvestment and Stock Purchase Plans	8	$ 8
Shares issued for auto-investments pursuant to the 2015 and 2018 Dividend Reinvestment and Stock Purchase Plans, Shares		473
Shares issued for dividend reinvestment pursuant to the 2015 and 2018 Dividend Reinvestment and Stock Purchase Plans	21	$ 21
Shares issued for dividend reinvestment pursuant to the 2015 and 2018 Dividend Reinvestment and Stock Purchase Plans, Shares		1,174
Stock-based compensation	1,247	$ 1,247
Ending balance at Mar. 31, 2018	$ 64,032	$ 16,125	$ 47,907
Ending balance, shares at Mar. 31, 2018		7,807,594

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 12,742	$ 7,624
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	178	184
Deferred income taxes	(3,848)	1,296
Stock-based compensation	1,247	1,057
Amortization of loan fee payments	(73)	(73)
Change in operating assets and liabilities:
Investment fee income receivable	(387)	(330)
Prepaid expenses	1,136	620
Other accounts receivable	98	44
Other assets	(43)	3
Accrued liabilities and accounts payable	(2,832)	(2,019)
Income taxes payable	(42)	(383)
Deferred rent	(15)	83
Net cash provided by operating activities	8,161	8,106
Cash flows from investing activities:
Purchases of property and equipment	(220)	(68)
Payments related to management contracts	(3,394)	(119)
Net cash used in investing activities	(3,614)	(187)
Cash flows from financing activities:
Principal payments on bank loan	(2,114)	(2,114)
Restricted stock units repurchased for employee tax withholding	(151)	(168)
Proceeds from shares issued pursuant to the 2015 and 2018 Dividend Reinvestment and Stock Repurchase Plans	29	2
Dividend payments	(1,365)	(1,074)
Cash paid for fractional shares		(1)
Net cash used in financing activities	(3,601)	(3,355)
Net increase in cash and cash equivalents	946	4,564
Cash and cash equivalents at the beginning of the period	15,700	3,535
Cash and cash equivalents at the end of the period	16,646	8,099
Cash paid for:
Income taxes	2,206	1,994
Interest	$ 534	$ 271

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	6 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Financial Statement Presentation	(1) Basis of Financial Statement Presentation The accompanying condensed balance sheet as of September 30, 2017, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of and for the three and six months ended March 31, 2018 and 2017, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and include the accounts of Hennessy Advisors, Inc. (the “Company,” “we,” “us,” or “our”). Certain information and footnote disclosures in these unaudited interim condensed financial statements, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission for Quarterly Reports on Form 10-Q. Form 10-K The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 14 open-end The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things: • acting as portfolio manager for the fund or overseeing the sub-advisor • performing a daily reconciliation of portfolio positions and cash for the fund; • monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; • performing activities such as maintaining a compliance program, conducting ongoing reviews of the compliance programs of the fund’s service providers (including its sub-advisor, on-site sub-advisor, • overseeing the selection and continued employment of the fund’s sub-advisor, sub-advisor’s • overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales and marketing, public relations, audit, information technology, and legal services to the fund; • maintaining in-house • being actively involved with preparing all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; • preparing or reviewing a written summary of the fund’s performance for the most recent 12-month • monitoring and overseeing the accessibility of the fund on third party platforms; • paying the incentive compensation of the fund’s compliance officers and employing other staff such as legal, marketing, national accounts and distribution, sales, administrative, and trading oversight personnel, as well as management executives; • providing a quarterly compliance certification to Hennessy Funds Trust; and • preparing or reviewing materials for the Funds’ Board of Trustees, presenting or leading discussions to or with the Funds’ Board of Trustees, preparing or reviewing meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. The Company earns shareholder service fees from Investor Class shares of the Hennessy Funds by, among other things, maintaining a toll-free Effective February 28, 2017, the Company waives fees with respect to the Hennessy Technology Fund to comply with a contractual expense ratio limitation. The fee waiver is calculated daily by the Hennessy Funds’ accountants at U.S. Bancorp Fund Services, LLC and subsequently reviewed by management, and is charged to expense monthly by the Company as an offset to revenue. The waived fee is deducted from investment advisory fee income and reduces the aggregate amount of advisory fees received by the Company in the subsequent month. To date, the Company has only waived fees based on contractual obligations, but the Company has the ability to waive fees at its discretion. If the Company elects to voluntarily waive fees, the decision to waive fees would not apply to previous periods, but would only apply on a going forward basis. The Company’s contractual agreements for investment advisory and shareholder services provide persuasive evidence that an arrangement exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable as the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided.

Management Contracts Purchased

Management Contracts Purchased	6 Months Ended
	Mar. 31, 2018
Text Block [Abstract]
Management Contracts Purchased	(2) Management Contracts Purchased Throughout its history, the Company has completed nine purchases of assets related to the management of 28 different mutual funds, some of which were reorganized into already existing Hennessy Funds. In accordance with guidance issued by the Financial Accounting Standards Board (“FASB”), the Company periodically reviews the carrying value of its purchased management contracts to determine if any impairment has occurred. The fair value of management contracts are based on management estimates and assumptions, including third party valuations that utilize appropriate valuation techniques. The fair value of the management contracts was estimated by applying the income approach. It is the opinion of the Company’s management that there was no impairment as of March 31, 2018, or September 30, 2017. Under the FASB guidance on “Intangibles – Goodwill and Other,” intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment. The Company reviews the life of the management contracts each reporting period to determine if they continue to have an indefinite useful life. The Company considers the mutual fund management contracts to be intangible assets with an indefinite useful life and are not impaired as of March 31, 2018, or September 30, 2017. Most recently, the Company purchased the assets related to the management of the Rainier Large Cap Equity Fund, the Rainier Mid Cap Equity Fund, and the Rainier Small/Mid Cap Equity Fund (collectively, the “Rainier U.S. Funds”). In the aggregate, the Company paid $3.1 million for approximately $375 million of assets related to management of the Rainier U.S. Funds. The transaction, which was completed in two stages, was consummated in accordance with the terms and conditions of the Transaction Agreement, dated as of May 10, 2017, as amended, between the Company, Manning & Napier Group, LLC, and Rainier Investment Management, LLC. The details of the first stage of the transaction, which closed on December 1, 2017, are as follows: • The Company purchased the assets related to the management of (i) the Rainier Large Cap Equity Fund, which were reorganized into the Hennessy Cornerstone Large Growth Fund, and (ii) the Rainier Mid Cap Equity Fund, which were reorganized into the Hennessy Cornerstone Mid Cap 30 Fund. • The purchase price of $1.0 million was funded with available cash and was based on the total net assets under management of the Rainier Large Cap Equity Fund and the Rainier Mid Cap Equity Fund as measured at the close of business on November 30, 2017. • The amount of the purchased assets under management as of the closing date was approximately $122 million. The details of the second stage of the transaction, which closed on January 12, 2018, are as follows: • The Company purchased the assets related to the management of the Rainier Small/Mid Cap Equity Fund and reorganized them into the Hennessy Cornerstone Mid Cap 30 Fund. • The purchase price of $2.1 million was funded with available cash and was based on the total net assets under management of the Rainier Small/Mid Cap Equity Fund as measured at the close of business on January 11, 2018. • The amount of the purchased assets under management as of the closing date was approximately $253 million.

Investment Advisory Agreements

Investment Advisory Agreements	6 Months Ended
	Mar. 31, 2018
Text Block [Abstract]
Investment Advisory Agreements	(3) Investment Advisory Agreements The Company has management contracts with Hennessy Funds Trust, under which it provides investment advisory services to all classes of the 14 Hennessy Funds. The management contracts must be renewed annually (except in limited circumstances) by (i) the Funds’ Board of Trustees or the vote of a majority of the outstanding shares of the applicable Hennessy Fund and (ii) the vote of a majority of the trustees of Hennessy Funds Trust who are not interested persons of the Hennessy Funds. If the management contracts are not renewed annually as described above, they will terminate automatically. There are two additional circumstances in which the management contracts would terminate. First, the management contracts would automatically terminate if the Company assigned them to another advisor (assignment includes “indirect assignment,” which is the transfer of the Company’s common stock in sufficient quantities deemed to constitute a controlling block). Second, each management contract may be terminated prior to its expiration upon 60 days’ notice by either the Company or the applicable Hennessy Fund. As provided in the management contracts with the 14 Hennessy Funds, the Company receives investment advisory fees monthly based on a percentage of the respective fund’s average daily net assets. The Company has entered into sub-advisory sub-advisory sub-advisor sub-advisors sub-advisory Effective February 28, 2018, the Company amended the sub-advisory sub-advisor sub-advisory sub-advisory sub-advisory In exchange for the sub-advisory sub-advisory sub-advisors Sub-advisory sub-advised

Bank Loan

Bank Loan	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Bank Loan	(4) Bank Loan The Company has an outstanding bank loan with U.S. Bank National Association (“U.S. Bank”), as administrative agent and as a lender, and California Bank & Trust, as syndication agent and as a lender. On September 17, 2015, in connection with the repurchase of up to 1,500,000 shares of the Company’s common stock pursuant to its self-tender The term loan agreement requires 48 monthly payments in the amount of $364,583 plus interest calculated based on one of the following, at the Company’s option: (1) the sum of non-cash plus (2) the sum of plus one-month The Company currently uses a one-month one-month LIBOR-based rate-based All borrowings under the term loan agreement are secured by substantially all of the Company’s assets. The final installment of the then-outstanding The term loan agreement includes certain reporting requirements and loan covenants requiring the maintenance of certain financial ratios. The Company was in compliance for the periods ended March 31, 2018 and 2017. In connection with securing the financings discussed above, the Company incurred loan costs in the amount of $0.41 million. These costs were reclassified to offset debt liability per Accounting Standards Update (“ASU”) 2015-03 Gross Debt at Debt Debt, Net of Issuance Cost, (In thousands) Current portion of debt $ 4,375 $ (147 ) $ 4,228 Long-term portion of debt 19,687 (73 ) 19,614 Total Debt $ 24,062 $ (220 ) $ 23,842 Gross Debt at Debt Debt, Net of Issuance Cost, (In thousands) Current portion of debt $ 4,375 $ (147 ) $ 4,228 Long-term portion of debt 21,875 (147 ) 21,728 Total Debt $ 26,250 $ (294 ) $ 25,956

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	(5) Income Taxes On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which permits companies a period of one year from the enactment date of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) to account for the resulting tax effects. Any required adjustment would be included in “net earnings from continuing operations” as an adjustment to income tax expense in the reporting period during which such adjustment is identified. In our first quarter, based on available information, we estimated the impact of the reduced corporate tax rate and re-measured The Company’s effective income tax rates for the three months ended March 31, 2018 and 2017, were 23.8% and 37.8%, respectively. The effective income tax rate was lower for the three months ended March 31, 2018, due to the reduced federal tax rate resulting from the 2017 Tax Act, offset partially by state taxes. The Company’s effective income tax rates for the six months ended March 31, 2018 and 2017, were -5.1% one-time, non-cash re-measurement We are subject to income tax in the U.S. federal jurisdiction and multiple state jurisdictions. Our U.S. federal tax returns for 2014 and subsequent years remain open to examination. Generally, we are no longer subject to state examinations by tax authorities for years prior to fiscal year 2014. For state tax jurisdictions with unfiled tax returns, the statute of limitations will remain open indefinitely.

Earnings per Share and Dividend

Earnings per Share and Dividends per Share	6 Months Ended
	Mar. 31, 2018
Text Block [Abstract]
Earnings per Share and Dividends per Share	(6) Earnings per Share and Dividends per Share Basic earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents, which consist of restricted stock units (“RSUs”). All common stock equivalents were dilutive and therefore included in the diluted earnings per share calculation for the three and six months ended March 31, 2018 and 2017. On January 26, 2017, the Company’s Board of Directors declared a 3-for-2 A quarterly cash dividend of $0.10 per share was paid on March 5, 2018, to shareholders of record as of February 9, 2018.

Equity

Equity	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Equity	7) Equity Amended and Restated 2013 Omnibus Incentive Plan The Company has adopted, and the Company’s shareholders have approved, an Amended and Restated 2013 Omnibus Incentive Plan (the “Omnibus Plan”). Under the Omnibus Plan, participants may be granted RSUs, representing an unfunded, unsecured right to receive a share of the Company’s common stock on the date specified in the recipient’s award. The Company issues new shares of its common stock when it is required to deliver shares to an RSU recipient. The RSUs granted under the Omnibus Plan vest over four years, at a rate of 25% per year. The Company recognizes stock-based RSU activity for the six months ended March 31, 2018, was as follows: RSU Activity Six Months Ended March 31, 2018 Number of RSUs Weighted Avg. Per Share at Each Date Non-vested 358,291 $ 16.48 Granted — — Vested (1) (78,901 ) 15.78 Forfeited — — Non-vested 279,390 $ 16.67 (1) The number of vested RSUs includes partially vested shares. Shares of common stock have not been issued for the partially vested shares, but the related compensation expense has been booked. There were 29,384 net shares of common stock issued for vested and issued RSUs in the six months ended March 31, 2018. RSU Compensation Six Months Ended March 31, 2018 (In thousands) Total expected compensation expense related to RSUs $ 12,490 Compensation expense recognized at reporting date (7,831 ) Unrecognized compensation expense related to RSUs at reporting date $ 4,659 As of March 31, 2018, there was $4.7 million of total RSU compensation expense related to non-vested Dividend Reinvestment and Stock Purchase Plan In January 2018, the Company adopted an updated Dividend Reinvestment and Stock Purchase Plan (the “DRSPP”), replacing the previous Dividend Reinvestment and Stock Purchase Plan established in March 2015, to provide shareholders and new investors with a convenient and economical means of purchasing shares of the Company’s common stock and reinvesting cash dividends paid on the Company’s common stock. Under the DRSPP and its predecessor, the Company issued 1,647 and 933 shares of common stock during the six months ended March 31, 2018 and 2017, respectively. Stock Buyback Program In August 2010, the Company adopted a stock buyback program. The program provides that the Company may repurchase up to 1,500,000 shares of its common stock and has no expiration date. Share repurchases may be made in the open market, in privately-negotiated

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(8) Commitments and Contingencies The Company’s headquarters is located in leased office space under a single non-cancelable five-year The Company also has office space under a single non-cancelable one-year The Company also has office space under a single non-cancelable The Company also has office space under a single, non-cancelable sub-lease sub-lease six-month sub-lease. As of March 31, 2018, there were no material changes in the leasing arrangements that would have a significant effect on future minimum lease payments reported in the Company’s Annual Report on Form 10-K

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	(9) Fair Value Measurements The Company applies the FASB standard “Fair Value Measurements” for all financial assets and liabilities, which establishes a framework for measuring fair value and expands disclosures about fair value measurements. The standard defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” It also establishes a fair value hierarchy consisting of the following three “levels” that prioritize the inputs to the valuation techniques used to measure fair value: • Level 1 – Unadjusted, quoted prices in active markets for identical assets or liabilities that an entity has the ability to access at the measurement date. • Level 2 – Other significant observable inputs (including, but not limited to, quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, and model-derived • Level 3 – Significant unobservable inputs (including the entity’s own assumptions about what market participants would use to price the asset or liability based on the best available information) when observable inputs are not available. Based on the definitions, the following table represents the Company’s assets categorized in the Level 1 to 3 hierarchies as of March 31, 2018, and September 30, 2017: Fair Value Measurements at March 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 12,867 $ — $ — $ 12,867 Mutual fund investments 8 — — 8 Total $ 12,875 $ — $ — $ 12,875 Amounts included in: Cash and cash equivalents $ 12,867 $ — $ — $ 12,867 Investments in marketable securities 8 — — 8 Total $ 12,875 $ — $ — $ 12,875 Fair Value Measurements at September 30, 2017 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 13,832 $ — $ — $ 13,832 Mutual fund investments 8 — — 8 Total $ 13,840 $ — $ — $ 13,840 Amounts included in: Cash and cash equivalents $ 13,832 $ — $ — $ 13,832 Investments in marketable securities 8 — — 8 Total $ 13,840 $ — $ — $ 13,840 There were no transfers between levels during the six months ended March 31, 2018, or the year ended September 30, 2017.

New Accounting Standards

New Accounting Standards	6 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	(10) New Accounting Standards In November 2015, the FASB issued ASU 2015-17 non-current. In March 2016, the FASB issued ASU 2016-09 We elected to early adopt ASU 2016-09, 2016-09, In January 2017, the FASB issued ASU 2017-04 In February 2018, the FASB issued ASU 2018-02,

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	(11) Subsequent Events The Company has evaluated subsequent events through the date these financial statements were issued and has concluded that no material subsequent events occurred during this period that would require recognition or disclosure.

Basis of Financial Statement 18

Basis of Financial Statement Presentation (Policies)	6 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue Recognition	The accompanying condensed balance sheet as of September 30, 2017, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of and for the three and six months ended March 31, 2018 and 2017, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and include the accounts of Hennessy Advisors, Inc. (the “Company,” “we,” “us,” or “our”). Certain information and footnote disclosures in these unaudited interim condensed financial statements, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission for Quarterly Reports on Form 10-Q. Form 10-K The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 14 open-end The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things: • acting as portfolio manager for the fund or overseeing the sub-advisor • performing a daily reconciliation of portfolio positions and cash for the fund; • monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; • performing activities such as maintaining a compliance program, conducting ongoing reviews of the compliance programs of the fund’s service providers (including its sub-advisor, on-site sub-advisor, • overseeing the selection and continued employment of the fund’s sub-advisor, sub-advisor’s • overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales and marketing, public relations, audit, information technology, and legal services to the fund; • maintaining in-house • being actively involved with preparing all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; • preparing or reviewing a written summary of the fund’s performance for the most recent 12-month • monitoring and overseeing the accessibility of the fund on third party platforms; • paying the incentive compensation of the fund’s compliance officers and employing other staff such as legal, marketing, national accounts and distribution, sales, administrative, and trading oversight personnel, as well as management executives; • providing a quarterly compliance certification to Hennessy Funds Trust; and • preparing or reviewing materials for the Funds’ Board of Trustees, presenting or leading discussions to or with the Funds’ Board of Trustees, preparing or reviewing meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. The Company earns shareholder service fees from Investor Class shares of the Hennessy Funds by, among other things, maintaining a toll-free

Bank Loan (Tables)

Bank Loan (Tables)	6 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Summary of Debt Reclassification	The following is a reconciliation of the reclassification: Gross Debt at Debt Debt, Net of Issuance Cost, (In thousands) Current portion of debt $ 4,375 $ (147 ) $ 4,228 Long-term portion of debt 19,687 (73 ) 19,614 Total Debt $ 24,062 $ (220 ) $ 23,842 Gross Debt at Debt Debt, Net of Issuance Cost, (In thousands) Current portion of debt $ 4,375 $ (147 ) $ 4,228 Long-term portion of debt 21,875 (147 ) 21,728 Total Debt $ 26,250 $ (294 ) $ 25,956

Equity (Tables)

Equity (Tables)	6 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of Non-Vested Restricted Stock Units Activity	RSU activity for the six months ended March 31, 2018, was as follows: RSU Activity Six Months Ended March 31, 2018 Number of RSUs Weighted Avg. Per Share at Each Date Non-vested 358,291 $ 16.48 Granted — — Vested (1) (78,901 ) 15.78 Forfeited — — Non-vested 279,390 $ 16.67 (1) The number of vested RSUs includes partially vested shares. Shares of common stock have not been issued for the partially vested shares, but the related compensation expense has been booked. There were 29,384 net shares of common stock issued for vested and issued RSUs in the six months ended March 31, 2018.
Schedule of Non-Vested Restricted Stock Units Compensation	RSU Compensation Six Months Ended March 31, 2018 (In thousands) Total expected compensation expense related to RSUs $ 12,490 Compensation expense recognized at reporting date (7,831 ) Unrecognized compensation expense related to RSUs at reporting date $ 4,659

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Assets Categorized on Basis of Various Levels	Based on the definitions, the following table represents the Company’s assets categorized in the Level 1 to 3 hierarchies as of March 31, 2018, and September 30, 2017: Fair Value Measurements at March 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 12,867 $ — $ — $ 12,867 Mutual fund investments 8 — — 8 Total $ 12,875 $ — $ — $ 12,875 Amounts included in: Cash and cash equivalents $ 12,867 $ — $ — $ 12,867 Investments in marketable securities 8 — — 8 Total $ 12,875 $ — $ — $ 12,875 Fair Value Measurements at September 30, 2017 Level 1 Level 2 Level 3 Total (In thousands) Money market fund deposits $ 13,832 $ — $ — $ 13,832 Mutual fund investments 8 — — 8 Total $ 13,840 $ — $ — $ 13,840 Amounts included in: Cash and cash equivalents $ 13,832 $ — $ — $ 13,832 Investments in marketable securities 8 — — 8 Total $ 13,840 $ — $ — $ 13,840

Basis of Financial Statement 22

Basis of Financial Statement Presentation - Additional Information (Detail)	6 Months Ended
	Mar. 31, 2018Funds
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Hennessy funds to which company provides investment advisory services	14

Management Contracts Purchased

Management Contracts Purchased - Additional Information (Detail)	Jan. 12, 2018USD ($)	Dec. 01, 2017USD ($)	Mar. 31, 2018USD ($)Funds	Sep. 30, 2017USD ($)
Contracts In Progress Costs And Earnings [Line Items]
Number of mutual funds | Funds			28
Management contracts impairment amount			$ 0	$ 0
Manning and Napier Group LLC and Rainier Investment Management LLC [Member]
Contracts In Progress Costs And Earnings [Line Items]
Business combination, cash paid	$ 2,100,000	$ 1,000,000	3,100,000
Business acquisition, effective date of acquisition	Jan. 12, 2018	Dec. 1, 2017
Business combination, assets acquired and liabilities assumed, assets	$ 253,000,000	$ 122,000,000	$ 375,000,000
Business combination, agreement date	May 10, 2017

Investment Advisory Agreements

Investment Advisory Agreements - Additional Information (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2018Funds	Feb. 28, 2018USD ($)
Investments Agreements [Line Items]
Number of Hennessy funds to which company provides investment advisory services | Funds	14
Notice period for termination of agreement	60 days
SPARX [Member]
Investments Agreements [Line Items]
Increased sub advisory fees payable		0.35%
Net asset of fund		$ 500
Increased sub advisory fees payable		0.40%
Net asset of fund		$ 500
Increased sub advisory fees payable		0.42%
Net asset of fund		$ 1,000
Maximum net assets of fund		$ 500
SPARX [Member] | Hennessy Japan Fund [Member]
Investments Agreements [Line Items]
Sub advisory fees percentage		0.35%
SPARX [Member] | Hennessy Japan Small Cap Fund [Member]
Investments Agreements [Line Items]
Sub advisory fees percentage		0.20%

Bank Loan - Additional Informat

Bank Loan - Additional Information (Detail)	Mar. 01, 2018	Dec. 31, 2017	Sep. 17, 2015USD ($)shares	Mar. 31, 2018USD ($)Installment	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)
Debt Instrument [Line Items]
Long-term debt, gross				$ 24,100,000
Long-term debt				$ 23,842,000		$ 25,956,000
US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Common stock repurchase, share | shares			1,500,000
Outstanding bank loan			$ 35,000,000
Number of monthly installments payable | Installment				48
Required monthly loan principal repayment				$ 364,583
Final installment date				Sep. 17, 2019
Amortized loan costs				$ 410,000
Amortized cost on straight-line basis in months				48 months
Amortization expenses				$ 70,000	$ 70,000
Unamortized loan cost				$ 200,000
US Bank National Association Loan [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Outstanding bank loan			20,000,000
California Bank and Trust Loan [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Outstanding bank loan			$ 15,000,000
Prime Rate [Member] | US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				0.50%
One Month Libor [Member] | US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate		2.75%		1.00%
Debt instrument converted rate	1.664%
Effective interest rate on debt				4.414%
Debt conversion description				The Company intends to continue renewing the LIBOR rate contract on a monthly basis provided that the LIBOR-based interest rate remains favorable to the prime rate-based interest rate.
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				2.75%
Minimum [Member] | One Month Libor [Member] | US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Debt instrument additional basis spread				0.25%
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate				3.25%
Maximum [Member] | One Month Libor [Member] | US Bank National Association Loan [Member]
Debt Instrument [Line Items]
Debt instrument additional basis spread				0.75%

Bank Loan - Summary of Debt Rec

Bank Loan - Summary of Debt Reclassification (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Long-term Debt, by Current and Noncurrent [Abstract]
Current portion of debt, Gross Debt	$ 4,375	$ 4,375
Long-term portion of debt, Gross Debt	19,687	21,875
Total Debt, Gross Debt	24,062	26,250
Current portion of debt, Debt Issuance Cost	(147)	(147)
Long-term portion of debt, Debt Issuance Cost	(73)	(147)
Total Debt, Debt Issuance Cost	(220)	(294)
Current portion of debt, Debt, Net of Discount	4,228	4,228
Long-term portion of debt, Debt, Net of Discount	19,614	21,728
Total Debt, Debt, Net of Discount	$ 23,842	$ 25,956

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Tax Examination [Line Items]
Effective tax rates	23.80%		37.80%	(5.10%)	35.40%
Reduction to income tax expense due to Tax Cuts and Jobs Act of 2017		$ 4
Effective tax rates	23.80%		37.80%	(5.10%)	35.40%
Income tax benefit due to Tax Cuts and Jobs Act of 2017				$ 4
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Income Tax Examination [Line Items]
Open tax year				2,014
Domestic Tax Authority [Member] | Latest Tax Year [Member]
Income Tax Examination [Line Items]
Open tax year				2,014

Earnings per Share and Divide28

Earnings per Share and Dividends per Share - Additional Information (Detail)	Mar. 05, 2018$ / shares	Mar. 06, 2017
Earnings Per Share [Abstract]
Stock split ratio		1.5
Dividend paid	$ 0.10
Date of record	Feb. 9, 2018

Equity - Additional Information

Equity - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 31, 2010	Mar. 31, 2018	Mar. 31, 2017
Stock buyback program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchase of common stock shares	1,500,000	0	0
Dividend Reinvestment and Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period shares		1,647	933
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum Vesting Period		4 years
Rate of restricted stock units vest under plan		25.00%
Granted, Number of Restricted Share Units		0	0
Compensation expense related to non-vested awards not yet recognized		$ 4,659
Weighted-average vesting period for compensation expenses not yet recognized		2 years 6 months

Equity - Schedule of Non-Vested

Equity - Schedule of Non-Vested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested beginning balance, Number of RSUs	358,291
Granted, Number of RSUs	0	0
Vested, Number of RSUs	(78,901)
Forfeited, Number of RSUs	0
Non-vested ending balance, Number of RSUs	279,390
Non-vested beginning balance, Weighted Avg Fair Value Per Share at Each Date	$ 16.48
Granted, Weighted Avg Fair Value Per Share at Each Date	0
Vested, Weighted Avg Fair Value Per Share at Each Date	15.78
Forfeited, Weighted Avg Fair Value Per Share at Each Date	0
Non-vested ending balance, Weighted Avg Fair Value Per Share at Each Date	$ 16.67

Equity - Schedule of Non-Vest31

Equity - Schedule of Non-Vested Restricted Stock Units Activity (Parenthetical) (Detail)	6 Months Ended
	Mar. 31, 2018shares
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Awards issued during the period	29,384

Equity - Schedule of Non-Vest32

Equity - Schedule of Non-Vested Restricted Stock Units Compensation (Detail) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expected compensation expense related to RSUs	$ 1,247	$ 1,057
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expected compensation expense related to RSUs	12,490
Compensation expense recognized at reporting date	(7,831)
Unrecognized compensation expense related to RSUs at reporting date	$ 4,659

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Jan. 04, 2018USD ($)ft²	Mar. 31, 2018
California [Member]
Loss Contingencies [Line Items]
Lease expiration date		Jun. 30, 2021
Term of lessee's operating lease renewal		5 years
North Carolina [Member]
Loss Contingencies [Line Items]
Lease expiration date		Nov. 30, 2014
Term of lessee's operating lease renewal		3 months
Massachusetts [Member]
Loss Contingencies [Line Items]
Lease expiration date		Nov. 30, 2015
Term of lessee's operating lease renewal		1 year
Texas [Member] | Sublease [Member]
Loss Contingencies [Line Items]
Lease expiration date	Dec. 31, 2018
Term of lessee's operating lease renewal	1 year
Operating sub-lease area | ft²	600
Monthly rent expense for the initial term of the lease | $	$ 1,500

Fair Value Measurements - Asset

Fair Value Measurements - Assets Categorized on Basis of Various Levels (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund deposits	$ 12,867	$ 13,832
Mutual fund investments	8	8
Total	12,875	13,840
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund deposits	12,867	13,832
Mutual fund investments	8	8
Total	$ 12,875	$ 13,840

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2018	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Transfer from fair value level 1 to level 2	$ 0	$ 0
Transfer from fair value level 2 to level 1	0	0
Transfer into (out of) level 3	$ 0	$ 0

New Accounting Standards - Addi

New Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax expense (benefits)	$ 1,424	$ 2,205		$ (616)	$ 4,185
ASU 2016-09 [Member] | New Accounting Pronouncement Early Adoption Effect [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax expense (benefits)			$ (200)